24/7 SUPPORT
Download App
Published: 29 May 2026,07:21
Daily Market Analysis New
*Oil prices remained under pressure as markets reacted positively to progress in US-Iran ceasefire negotiations and potential reopening of the Strait of Hormuz.
*WTI recorded sharp weekly declines as traders reduced the geopolitical risk premium previously driven by fears of supply disruptions in the Middle East.
*A preliminary 60-day ceasefire extension and improving shipping conditions through Hormuz increased expectations of normalized global oil flows.
Oil prices remained under pressure and highly volatile over the past 24 hours as markets continued reacting to developments surrounding the ongoing US-Iran ceasefire negotiations and the potential reopening of the Strait of Hormuz. Recent reports from Reuters and Axios indicated that the United States and Iran have reached a preliminary 60-day memorandum of understanding to extend the ceasefire while continuing discussions regarding Iran’s nuclear program and regional security. The proposed agreement could eventually restore unrestricted shipping through the Strait of Hormuz, a critical route that normally carries nearly 20% of global oil and LNG supply. However, the deal still requires approval from US President Donald Trump, while Iranian officials stated negotiations have not yet been fully finalized.
The growing optimism surrounding a possible diplomatic breakthrough significantly reduced the geopolitical risk premium previously embedded in crude prices. As a result, both Brent and WTI crude recorded sharp weekly declines, with Brent crude falling toward the low-$90 region and WTI crude easing near the $88–89 level after previously surging above $100 during the peak of tensions. Markets increasingly believe that a successful agreement could gradually normalize shipping activity, ease supply disruption fears, and reduce inflationary pressures globally.
Despite the recent decline, oil prices remain extremely sensitive to geopolitical headlines. Fresh reports of renewed US-Iran military exchanges briefly triggered temporary rebounds in crude prices before losses resumed as ceasefire optimism returned. In addition, tanker traffic through the Strait of Hormuz remains below normal levels, highlighting that physical supply risks have not fully disappeared. Meanwhile, softer US economic data and expectations that the Federal Reserve may keep interest rates elevated for longer also contributed to concerns surrounding future global energy demand.
Overall, the market sentiment currently leans bearish for oil in the short term due to improving ceasefire prospects and hopes of restored supply flows. However, volatility is expected to remain elevated as any breakdown in negotiations or renewed Middle East escalation could quickly reverse the recent downside move in crude prices.
Crude Oil, H4:
Crude oil is currently under strong bearish pressure with the latest candlesticks showing continued downside momentum after rejecting higher levels near the $97–$100 zone. The price has broken below several recent swing lows and is trading around the $88 area, extending the sharp decline from the May highs above $109.The overall trend on this chart is bearish, as the price has been making lower highs and lower lows since the peak in late May.
RSI is currently reading around 33, hovering in oversold territory but showing slight flattening or minor divergence near the bottom. This suggests that while momentum remains negative, the selling speed may be slowing, raising the possibility of a short-term relief bounce or consolidation before further downside. MACD is showing a bearish setup with the histogram negative, the MACD line below the signal line, and both lines trending downward. There is no immediate bullish crossover visible, reinforcing the short-term downward bias.
In summary, the technical picture favors further weakness in the near term However, the deeply oversold RSI warns of possible exhaustion, so traders should watch for any bullish candlestick reversal patterns or positive MACD divergence for counter-trend opportunities.
Resistance Levels: 90.40, 97.20
Support Levels: 84.40, 79.50
Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.
Sign up for a PU Prime Live Account with our hassle-free process.
Effortlessly fund your account with a wide range of channels and accepted currencies.
Access hundreds of instruments under market-leading trading conditions.
Trading Platforms
Learn
About PU Prime
Corporate
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Thank You for Your Acknowledgement!
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
Thank You for Your Acknowledgement!
